07-12-1999 EDA MIN
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MEETING OF THE ELK RIVER
ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, JULY 12, 1999
Members Present:
President Dwyer, Commissioners Bender, GongolL Klinzing,
Thompson, Farber, and Motin
Members Absent:
None
Staff Present:
Executive Director Paul Steinman; Assistant Director of Economic
Development Marc Nevinski; Sandra Peine, City Clerk; Peter Beck,
City Attorney
1. Call Meetina To Order
Pursuant to due call and notice thereof, the meeting of the Elk River Economic
Development Authority was called to order at 6:00 p,m. by President Dwyer.
2. Consider Aaenda
COMMISSIONER GONGOLL MOVED TO APPROVE THE JULY 12, 1999, EDA AGENDA
AS PRESENTED. COMMISSIONER BENDER SECONDED THE MOTION. THE MOTION
CARRIED 7-0.
3.
Consider Consent Aaenda
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COMMISSIONER THOMPSON MOVED TO APPROVE THE JULY 12, 1999, EDA CONSENT
AGENDA AS FOLLOWS:
3.1. JUNE 14, 1999, SPECIAL EDA MINUTES - APPROVED
3.2. JUNE 14, 1999, REGULAR EDA MINUTES - APPROVED
3.3. CHECK REGISTER - APPROVED
COMMISSIONER FARBER SECONDED THE MOTION. THE MOTION CARRIED 7-0.
4. ODen Mike
No one appeared for this item.
5.
Review /Discuss Advertisina and Marketina Issues
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Executive Director Paul Steinman stated that over the past several years the EDA
has budgeted and spent approximately $17-20,000 on print advertising. Paul
Steinman described the publications that the EDA has used for advertising. The
EDA discussed the outcome of the strategic planning session in relation to
marketing being identified as one of the top priorities of the EDA. Discussion was
held regarding the possibility of using some of the advertising money to hire a
marketing consultant to help the EDA put together a marketing plan. Paul
Steinman indicated that staff is requesting an additional $7,000 in anticipation of
completing a marketing plan. The EDA discussed the possibility of the budgeted
amount of money not being enough to cover expenses for both advertising and
a marketing plan. Following this discussion it was the consensus of the EDA to
possibly cut some of the advertising costs and add that money to the marketing
consultant cost.
Economic Development Authority Minutes
Julv 12. 1999
Page 2
.
6.
Consider Resolution Approvina and Authorizina a Tax Increment Pledae
Agreement Reaardina TIF District No. 19
Executive Director Paul Steinman stated that the city's bond attorney is
recommending approval of a resolution for a tax increment pledge agreement
that is part of the overall bond sale recently approved by the City Council on
June 28, 1999. Paul Steinman explained that the resolution formalizes the process
of using tax increment from District No. 19 to pay $630,000 of the bonds that were
sold on June 28, 1999. He indicated that the $630,000 covers the cost of
construction of the lift station within TIF District No. 19.
COMMISSIONER MOTIN MOVED TO ADOPT EDA RESOLUTION NO. 99-1 APPROVING
AND AUTHORIZING THE EXECUTION OF A TAX INCREMENT PLEDGE AGREEMENT
RESPECTING PAYMENT OF A SPECIFIED PORTION OF THE $5,725,000 GENERAL
OBLIGATION BONDS SERIES 1999A OF THE CITY OF ELK RIVER, MINNESOTA.
COMMISSIONER BENDER SECONDED THE MOTION. THE MOTION CARRIED 7 -0.
7.
Consider Approval of Contract for Private Redevelopment Reaardina TIF District
No. 19
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Executive Director Paul Steinman indicated that a Contract for Private
Redevelopment by and Between the Economic Development Authority in and
for the City of Elk River and Associated Investors of Elk River, Inc., Fischer Sand and
Aggregate, LLP, and the Elk River Business Park, LLC, has been drafted and is
ready for EDA consideration. Paul Steinman reviewed the basic principals of the
developers agreement. Discussion was held regarding the 50 percent penalty of
the tax increment owed to the developer for not having met goals of
development of the Business Park. The concern was whether the 50 percent
penalty would be cumulative. Another concern discussed related to the fact
that there were no personal guarantees from the principals of the companies.
The city attorney indicated that the bond counsel has advised the city that there
can be no personal guarantees due to stringent regulations that have to be
followed for tax exempt bonding.
COMMISSIONER GONGOLL MOVED TO APPROVE THE CONTRACT FOR PRIVATE
REDEVELOPMENT BY AND BETWEEN THE EDA AND DEVELOPERS ALLOWING FOR STAFF
AND THE CITY ATTORNEY TO MAKE FINAL MINOR LANGUAGE MODIFICATIONS AND
AUTHORIZING EXECUTION OF THE CONTRACT. COMMISSIONER FARBER SECONDED
THE MOTION. THE MOTION CARRIED 7-0.
8. Other Business
Post Office Relocation - Executive Director Paul Steinman indicated that the Post
Office will be before the EDA on August 9, 1999, to make a presentation on their
relocation plans. Paul Steinman noted that the HRA has been invited to this
meeting.
Budaetina Process - Executive Director Paul Steinman informed the EDA that the
EDA budget will be presented at the August 9, 1999, EDA meeting.
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Community Venture Network Meetina Summary - President Dwyer indicated that
he reviewed the six prospects presented by the EDA from the Community Venture
Network. He noted that he did not feel the EDA is receiving a benefit from CVN
based on the six prospects that he reviewed. Assistant Director of Economic
Economic Development Authority Minutes
Julv 12, 1999
Page 3
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Development Marc Nevinski updated the EDA on the six businesses from CVN.
Commissioner Bender suggested that there may be some crossover from
Consultant Harlan Jacobs and CVN. He further suggested that the EDA consider
using Harlan Jacobs more and ending the relationship with CVN.
COMMISSIONER BENDER MOVED TO END THE RELATIONSHIP WITH COMMUNITY
VENTURE NETWORK. COMMISSIONER THOMPSON SECONDED THE MOTION.
Commissioner Motin indicated he would like to continue for one more quarter.
Commissioner Farber indicated that the city should talk to Harlan Jacobs
regarding this issue prior to ending the relationship with CVN. He suggested going
forward for one more quarter.
THE MOTION FAILED 4-3. President Dwyer and Commissioners Thompson and
Bender voted aye. Commissioners Gongoll, Klinzing, Farber, and Motin voted nay.
9. Adiournment
There being no further business, COMMISSIONER THOMPSON MOVED TO ADJOURN.
COMMISSIONER FARBER SECONDED THE MOTION. THE MOTION CARRIED 7-0.
The meeting of the Elk River Economic Development Authority was adjourned at
7:05 p.m.
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SCiiidra Peine
City Clerk
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